Compared

Proposition

&Proposition

Californians Face Crucial Voteon Public Schools in November

California’s K-12 schools are severely underfunded compared to many other states.

Budget cuts in recent years have led to fewer instructional days, larger classes, fewer

counselors and other reductions in core student services.

An EdSource Infographic

Two initiatives on the November 6, 2012 ballot attempt to address the state’s inability to close its

budget de�cits and stabilize funding for schools. Californians can vote for either or both measures.

If they both pass, the one with the most votes will become law.

Proposition 30: The Schools and Local Public Safety

Protection Act of 2012

Proposition 38: Our Children. Our Future. Local

Schools and Early Education Investment and Bond Reduction Act

Key Sponsor:

Major Backers Include:

Opponents Include:

Gov. Jerry Brown

California Teachers Association

League of WomenVoters

California Federationof Teachers

Howard JarvisTaxpayers Association

California RepublicanParty

California PoliceChiefs Association

CaliforniaDemocratic Party

National Federationof IndependentBusiness California

Key Sponsor:

Major Backers Include:

Opponents Include:

Philanthropist Molly Munger and theAdvancement Project, a Los Angeles-based civil rights organization

California State PTA

California Chamberof Commerce

CaliforniaDemocratic Party

CaliforniaRepublican Party

California StateSheriffs’ Association

Proposition 30: Proposition 38:

Here are key features of the two initiatives:

Increases state salestax by ¼ cent.

Increases state personal income tax rates on

Californians �ling as single taxpayers and

earning $250,000.* However, the increased tax

is calculated only on the income earned above

$250,000.

Increases state personal income taxes on Californians

�ling as single taxpayers and earning over

$7,316.* On the lowest earners, the increase is 0.4

percentage points, and at the highest income levels

(more than $2.5 million) the increase is 2.2

percentage points.

Lowest Earners Highest income levels(more than $2.5 million)

0.4%

2.2%

How will revenues be raised?

* Single income after deductions. Comparable increases apply to joint �lers and heads of households. (Top marginal income tax rate for highest earners is currently 10.3%)

Tax rate willincrease by:

Tax rate willincrease by:

2%$300k

to$500k

3%$500kand

above

1%$250k

to$300k

Proposition 30:

How much revenue will be raised?

About $6 billion in annual revenues*

About $2.9 billion would go to K-12 schools and community colleges in 2012-13,

according to the Department of Finance.

Proposition 38: About $10 billion in annual revenues, 30% of which will go

to pay down state bond debt for the �rst four years.**

Money will go to schools beginning

in current school year. Amounts

raised will depend on how well the

economy is doing.

Money will go to schools beginning in the

2013-14 school year. Amounts raised will

depend on how well the economy is doing.

*Estimates from the Legislative Analyst’s Of�ce (LAO). The Department of Finance estimates higher annual revenues of $7.1 billion. Revenues are expected to be higher in the �rst year (2012-13). **Estimates from LAO. Revenues are expected to be higher in the �rst year (2013-14).

Proposition 30: Proposition 38: How long will the taxes last?

Where will the money go?

2013 2014 2015 2016

Sales tax increases for 4 years startingJan. 1, 2013.

State personal income tax increases for

12 years starting Jan. 1, 2013. 2012 2013 2014

2016 2017 2018

2015

Personal income tax increases for 7 yearsretroactively starting Jan. 1, 2012.

*Estimates from the Legislative Analyst’s Of�ce (LAO). The Department of Finance estimates higher annual revenues of $7.1 billion. Revenues are expected to be higher in the �rst year (2012-13). **Estimates from LAO. Revenues are expected to be higher in the �rst year (2013-14).

2013 2014 2015

2017 2018 2019 2020

2021 2022 2023 2024

2016

Proposition 30: Proposition 38: Where will the money go?

Revenues �ow to an “Education Protection Account”within the state’s General Fund.

Revenues will be used to support K-12 schools,pre-school and other early childhood programsand, initially, to pay down state bond debt.

Balance will be used for a range of state programs.

Of revenues spenton education: goes to K-12

education. Funds go directly to school sites

goes to early childhood programs

designated to paying state bond debt with intention of reducing

state de�cit

Beyond 2017, 85% of revenueswill go to K-12 education.

and 15% to earlychildhood programs.

In the first 4 years:

In the remaining 8 years:

89%

11% 11% will go tocommunity colleges.

89% will go to K-12schools.

$ $

$ $$ $ $$ $ $

$$

$ $$

$ $

$ $$ $ $$ $ $

$$

$ $$

$ $

$ $$ $ $$ $ $

$$

$ $$60% 10% 30%

In general, 40% to 60% of the new revenues will go to schools and community colleges under funding formulas required by Proposition 98, the voter approved constitutional amendment.

$ $

$ $$ $ $$ $ $

$$

$ $$$ $

$ $$ $ $$ $ $

$$

$ $$

$ $

$ $$ $ $$ $ $

$$

$ $$

K-14 funding

40% - 60%

Proposition 30: Proposition 38: How will the revenues be managed?

$

Revenues go into a new “Education ProtectionAccount” within the state’s General Fund.

$

Revenues go into a new “California Education Trust Fund,” operating independently of the state’s regular budget process.

Revenues cannot be used for administrativecosts or salary increases for current employees.

Funds cannot be used for administrative costs.

Fund is overseen by Fiscal Oversight Boardmade up of �ve key state of�cials.

A district’s school board and communitycollege board must hold open meetings todetermine use of funds.

Each school district must have two annualmeetings to get public input and explain howfunds will be used and their impact.

$ Use of revenues must be accountedfor publicly.

Annual audits by school boards andstate Controller.

Schools must display their budgets publicly,and report annually on use of funds.

ANNUALREPORT

Annual independent audit authorized byFiscal Oversight Board.

What if Prop. 30 fails?

What if Prop. 38 fails?

If voters reject Prop. 30, deep “trigger cuts” will automatically go into effect, reducing revenues to schools,

colleges, and universities.

-$5.4 billion

School and community college

funding would be cut

by billions of dollars:

K-12 schools

would be permitted

to reduce the school

year an additional

3 weeks.

The University of California and California State Universitywould each lose a minimum of

Schools and early childhood programs would lose out on billions of dollars in revenues.

The state would not get help paying o� its state bond debts.

2013

$250 million.

What if both initiatives are approved by voters?

Can Californians Votefor Both Initiatives? YES.

Some organizations, such as the California School Boards Association,

are encouraging voters to vote "Yes" on both, because voting for both

increases the likelihood that one of the initiatives will pass. A divided

vote will make it more dif�cult to achieve the simple majority (more

than 50%) needed for passage of either initiative.

The initiative with the most votes becomes state law.

Need more information to help you decide? Go to

http://www.edsource.orgto learn more about Prop. 30 and Prop. 38.

Sources: “Decision Guide: Tax Initiatives Headed for California’s November Ballot,” Silicon Valley Education Foundation, September 2012.

Enacted Budget 2012, California Department of Finance.

Legislative Analyst’s Of�ce, Analysis of Prop. 30, March 16, 2012 and Analysis of Prop. 38, Aug. 13, 2012.

Prop. 30 Website: http://www.yesonprop30.com/index.php

Prop. 38 Website: http://www.prop38forlocalschools.org/

“What Would Proposition 38 Mean for California?” California Budget Project, September 2012.

“What Would Proposition 30 Mean for California?” California Budget Project, September 2012.

+150%

This infographic was produced by EdSource, a nonpro�t, nonpartisan organization founded in 1977 to engage

Californians on key education challenges, with the goal of promoting education success.

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